Farley’s & Sathers Closes MN HQ, Cuts Jobs After Merger

About a week after Farley’s & Sathers completed its merger with Ferrara Pan Candy Company, the combined business announced plans to shutter facilities in Minnesota and Tennessee, resulting in an unspecified number of layoffs.

The recent merger of Round Lake-based Farley’s & Sathers Candy Company with an Illinois business will result in the closure of Farley’s & Sathers’ Minnesota headquarters, as well as an undisclosed number of layoffs.

Farley’s & Sathers last month announced plans to merge with Forest Park, Illinois-based Ferrara Pan Candy Company, Inc.

Farley’s & Sathers makes confectionary and gum products under brand lines that include Brach’s, Now and Later, and Trolli. Ferrara, meanwhile, makes private-label confections and its own lines of candy under the brands Lemonheads, Red Hots, Black Forest, Atomic Fireballs, and Boston Baked Beans.

The companies last week announced that the merger has been completed, and the combined company, called Ferrara Candy Company, Inc., will be based in Illinois.

In a news release announcing the completion of the merger, Ferrara Candy Company Chairman and CEO Salvatore Ferrara II thanked “the hard-working employees of both companies for their support throughout this process,” saying that together they can help the combined company “reach new heights.”

But not all of those employees will remain with the combined company. In a prepared statement e-mailed to Twin Cities Business on Tuesday, Ferrara Candy Company said that the merger “requires some necessary changes as part of integration planning.”

“Accordingly, today we are announcing a number of important, but difficult, changes to the company’s organizational structure, which will primarily impact our operations in Round Lake, Minnesota, and Chattanooga, Tennessee,” the company said.

Ferrara Candy Company will begin winding down operations at Farley’s & Sathers’ Round Lake headquarters facility this summer and will shutter it by the spring of 2013. The company will also shut down packaging and distribution operations in Tennessee this fall in order to consolidate them with other existing facilities.

The company said the decision “impacts positions in Round Lake and Chattanooga,” but it did not disclose the number of affected employees. The third-party communications firm that supplied Ferrara Candy Company’s written statement declined to provide further comment, and a call to the candy company was directed to its CEO, who was not available for comment Tuesday afternoon.

The Star Tribune reported in May that Farley’s & Sathers employs 250 in Round Lake, and it has a total of 1,100 workers at facilities across the United States and in Mexico.

Ferrara Candy Company said in its statement that it will provide “severance, outplacement services, and internal opportunities” to help “ease the transition for those affected.”